110th CONGRESS
1st Session

S. 282

To amend the Higher Education Act of 1965 to reduce over a 5-year period the interest rate on certain undergraduate student loans.

IN THE SENATE OF THE UNITED STATES

January 12, 2007

Mr. DURBIN (for himself and Mr. KENNEDY) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

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A BILL

To amend the Higher Education Act of 1965 to reduce over a 5-year period the interest rate on certain undergraduate student loans.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `College Student Relief Act of 2007'.

SEC. 2. APPLICABLE INTEREST RATES.

Section 427A(l) of the Higher Education Act of 1965 (20 U.S.C. 1077a(l)) is amended--

(1) in paragraph (1), by inserting `and subject to paragraph (4)' after `Notwithstanding subsection (h)'; and

(2) by adding at the end the following:

`(4) SPECIAL RULE FOR SUBSIDIZED UNDERGRADUATE LOANS- Notwithstanding subsection (h), with respect to any loan made, insured, or guaranteed under this part (other than a loan made pursuant to section 428B, 428C, or 428H) to or for an undergraduate student for which the first disbursement is made on or after--

`(A) July 1, 2007, the applicable rate of interest shall be 6.12 percent on the unpaid principal balance of the loan;

`(B) July 1, 2008, the applicable rate of interest shall be 5.44 percent on such balance;

`(C) July 1, 2009, the applicable rate of interest shall be 4.76 percent on such balance;

`(D) July 1, 2010, the applicable rate of interest shall be 4.08 percent on such balance; and

`(E) July 1, 2011, the applicable rate of interest shall be 3.40 percent on such balance.'.

END